Mining budgeting
MINING WORKING CAPITAL CALCULATOR
Working capital = the cash you need to keep the lights on between paying suppliers and receiving buyer payment. The bigger the buyer payment delay, the bigger the working capital line.
Formula
Working capital = (debtor days − supplier days) × daily opex + payroll buffer + 1 month diesel + royalty quarterly reserve.
Sizing the buffer
Add 1.5–2× monthly cash opex as a safety buffer in the first 6 months while operations stabilise.
Worked example
Daily opex $24k, 60-day debtor, 30-day supplier → (60−30) × $24k = $720k + payroll $180k + diesel $50k + royalty $90k → ~$1.04 m working capital.
Frequently asked questions
Where do I get working capital?
Off-take advances, trade finance from the buyer, supplier credit, or commodity-backed lending facilities. Equity is the most expensive route.